Sales to US and the VAT Flat Rate Scheme

[Craig@Clarity]

No problem

[blacjac]

According to HMRC’s guidance of the Flat rate Scheme:

Don't include:
• services you've purchased from outside the UK that you've had to reverse charge
• disbursements - costs you pass on to your clients that meet the necessary VAT conditions
• private income, for example income from shares
• the proceeds from the sale of goods you own but which have not been used in your business
• any sales of gold that are covered by the VAT Act, Section 55 - see the link below
• non-business income and any supplies outside the scope of UK VAT
• sales of capital expenditure goods on which you have claimed back the VAT you paid
HM Revenue & Customs: Flat Rate Scheme for VAT


And guidance on place of supply:

If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return.

HM Revenue & Customs: How to work out your place of supply of services for VAT

Maybe your accountant knows something I don't. Perhaps you're selling to a non-business customer? Not sure. I'd go back to them and clarify.

Thanks Craig, however it was definitely a business customer.

I suspect the 'place of supply' could be a bit of a grey area, however going back to my accountant on this isn't really an option (due to another thread I am not allowed to link to...) just wondering if it is another thing to add to the list of complaints I send them when I find another.....

[Platypus]

You sure about that Craig? My accountant told me otherwise....

I looked into this in great detail. The rules are no quite so straightforward as "it's the US so exempt". Check out VAT Notice 741 (Place of Supply of Services) and see which bits apply to you.

In my case, my contracting services are exempt from VAT as they are supplied directly to a US company.